Personal Finance | How to manage your money

Personal finance is a term that refers to the management of an individual's money, savings, and investments; This includes budgeting, banking, insurance, mortgages, investments, retirement planning, tax planning, and wills.

The term also often refers to the entire industry of providing financial services to individuals and households and advising them on financial and investment opportunities.

The purpose of personal finance is to meet personal financial goals, such as having enough money to pay for short-term financial needs, planning for retirement, or saving for children for college.

Everything depends on your income, expenses, living requirements, goals, and personal desires - and develop a plan to meet those needs within your financial limits.

The personal financial planning process consists of 5 steps:
1. Evaluation: An individual's financial position is assessed by compiling simple financial statements, including balance sheets and income statements.
2. Goal Setting: There are many common goals, including short- and long-term goals. Typical goals most adults and teens have: paying off credit card debt/student loans/home/car loans, investing in retirement, investing in college expenses for children, and medical expenses.
3. Planning: The financial plan details how to accomplish the goals.
4. Implementation: Executing a financial plan often requires discipline and perseverance.
5. Monitoring and re-evaluating: The financial plan can be adjusted or re-evaluated over time.

Personal Finance Principles:
- Pay your credit card balance every month in full
- Save 20% of your income
- Maximize contributions to tax-advantaged funds such as 401(k) retirement funds, individual retirement accounts, and 529 education savings plans
- When investing your savings: Do not attempt to trade stocks with individual tickers / Avoid high-fee funds and actively manage / Look for low-cost, high-diversity mutual funds that balance risk and return relative to your retirement year.
- If using a financial advisor, ask them to commit to a fiduciary duty to act in your best interest.
- Support for government social insurance programs.

Chapters:
00:05 - Jamila Musayeva International social...
01:38 - Be financially literate: Educate yourself on earnings,...
03:34 - Get rid of your negative thoughts about money
09:38 - 2. Diversify your income streams
12:26 - Create your budget
13:51 - Want vs. Desire
18:43 - Do not be cheap on yourself
19:44 - 10% of your monthly income.

I hope you enjoyed this video. Don't forget to like the video and follow our channel on Gan Jing World for more videos!